Healthsouth Corporation (HLS) has reported 38.94 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $65.30 million, or $0.68 a share in the quarter, compared with $47 million, or $0.49 a share for the same period last year. On an adjusted basis, earnings per share were at $0.72 for the quarter compared with $0.59 in the same period last year. Revenue during the quarter grew 8.10 percent to $935.40 million from $865.30 million in the previous year period. Gross margin for the quarter expanded 4 basis points over the previous year period to 98.10 percent. Total expenses were 82.92 percent of quarterly revenues, up from 82.45 percent for the same period last year. That has resulted in a contraction of 47 basis points in operating margin to 17.08 percent.
Operating income for the quarter was $159.80 million, compared with $151.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $198.80 million compared with $191.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 88 basis points in the quarter to 21.25 percent from 22.13 percent in the last year period.
"We are very pleased with the 2016 operating and financial results of our facility-based and home-based business segments," said Mark Tarr, president and chief executive officer of HealthSouth. "Weve been able to successfully execute on our stated objectives for the year of integrating Reliant and CareSouth, adding capacity to both business segments, increasing clinical collaboration between those segments, reducing our financial leverage, and continuing our program of shareholder distributions. With these achievements, we are poised for continued success in 2017."
Healthsouth Corporation forecasts revenue to be in the range of $3,850 million to $3,950 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.61 to $2.73 on adjusted basis.
Operating cash flow improvesHealthsouth Corporation has generated cash of $605.50 million from operating activities during the year, up 24.90 percent or $120.70 million, when compared with the last year. The company has spent $245 million cash to meet investing activities during the year as against cash outgo of $1,129.80 million in the last year.
The company has spent $381.60 million cash to carry out financing activities during the year as against cash inflow of $639.90 million in the last year period.
Cash and cash equivalents stood at $40.50 million as on Dec. 31, 2016, down 34.25 percent or $21.10 million from $61.60 million on Dec. 31, 2015.
Debt comes down marginally
Healthsouth Corporation has recorded a decline in total debt over the last one year. It stood at $3,016.40 million as on Dec. 31, 2016, down 4.89 percent or $155.10 million from $3,171.50 million on Dec. 31, 2015.
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